Income Taxes (Tables)
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12 Months Ended |
Aug. 29, 2026 |
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| Income Taxes |
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| Components of Income from Continuing Operations |
The components of operating income before income taxes are as follows: | | | | | | | | | | | | | Year Ended | | | August 29, | | August 30, | | August 31, | (in thousands) | | 2026 | | 2025 | | 2024 | | | | | | | | | | | Domestic | | $ | 2,673,124 | | $ | 2,499,120 | | $ | 2,663,148 | International | | | 577,576 | | | 635,212 | | | 673,982 | | | $ | 3,250,700 | | $ | 3,134,332 | | $ | 3,337,130 |
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| Provision for Income Tax Expense |
The provision for income tax expense consisted of the following: | | | | | | | | | | | | Year Ended | | | August 29, | | August 30, | | August 31, | (in thousands) | | 2026 | | 2025 | | 2024 | | | | | | | | | | | Current tax provision (benefit): | | | | | | | | | | Federal | | $ | 418,793 | | $ | 610,076 | | $ | 846,176 | State | | | 84,535 | | | 68,312 | | | 54,837 | International | | | 205,015 | | | 182,148 | | | 193,794 | Purchased tax credits | | | (155,359) | | | (250,698) | | | (368,870) | | | | 552,984 | | | 609,838 | | | 725,937 | Deferred tax provision (benefit): | | | | | | | | | | Federal | | | 369,908 | | | 77,770 | | | (163,775) | State | | | 965 | | | (4,463) | | | 12,264 | International | | | (50,415) | | | (28,217) | | | (10,616) | Purchased tax credits | | | (195,519) | | | (18,843) | | | 110,893 | | | | 124,939 | | | 26,247 | | | (51,234) | Income tax expense | | $ | 677,923 | | $ | 636,085 | | $ | 674,703 |
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| Reconciliation of Provision for Income Taxes |
A reconciliation of the provision for income taxes to the amount computed by applying the federal statutory tax rate to income before income taxes is as follows: | | | | | | | | | | | | | | | | Year Ended August 29, 2026 | (in thousands, except rate data) | | Provision | | Rate | | | | | | | | U.S. Federal statutory income tax rate | | $ | 682,647 | | 21.0 | % | State and local income taxes, net of federal income tax effect(1) | | | 67,810 | | 2.1 | % | Foreign tax effects: | | | | | | | Statutory tax rate difference - Mexico and United States | | | 53,100 | | 1.6 | % | Other | | | 2,237 | | 0.1 | % | Other foreign jurisdictions | | | (20,961) | | (0.6) | % | Effect of changes in tax laws or rates | | | | | | | Effect of cross-border tax laws (GILTI, Subpart F, FDII-net): | | | | | | | Foreign Tax Credits | | | (40,738) | | (1.2) | % | Other | | | 7,607 | | 0.2 | % | Nontaxable or nondeductible items: | | | | | | | Share-based compensation | | | (29,289) | | (0.9) | % | Other | | | (9,540) | | (0.3) | % | Tax credits: | | | | | | | Transferable tax credits | | | (34,722) | | (1.1) | % | Other | | | (8,869) | | (0.3) | % | Changes in valuation allowances (U.S. federal only) | | | 12,383 | | 0.4 | % | Other | | | 899 | | — | % | Worldwide change in unrecognized tax benefits | | | (4,641) | | (0.1) | % | Total provision for income taxes | | $ | 677,923 | | 20.9 | % |
| (1) | State taxes in California, Illinois, New York and New Jersey represent the majority of the tax effect in this category. |
| | | | | | | | Year Ended | | | August 30, | | August 31, | | | | 2025 | | 2024 | | | | | | | | Federal tax at statutory U.S. income tax rate | | 21.0 | % | 21.0 | % | State income taxes, net | | 1.6 | % | 1.6 | % | Share-based compensation | | (1.5) | % | (1.9) | % | U.S. Tax on Non-U.S. Income (Subpart F) | | 2.0 | % | 2.9 | % | U.S. Tax on Non-U.S. Income (NCTI) | | 1.0 | % | 1.2 | % | Non-U.S. Permanent Differences | | (0.8) | % | (1.3) | % | Non-U.S. Rate Differences | | 1.1 | % | 1.1 | % | Foreign Tax Credits | | (2.8) | % | (2.9) | % | Other | | (1.3) | % | (1.5) | % | Effective tax rate | | 20.3 | % | 20.2 | % |
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| Significant Components of Company's Deferred Tax Assets and Liabilities |
Significant components of the Company's deferred tax assets and liabilities were as follows: | | | | | | | | | August 29, | | August 30, | (in thousands) | | 2026 | | 2025 | | | | | | | | Deferred tax assets: | | | | | | | Net operating loss and state credit carryforwards | | $ | 62,468 | | $ | 44,815 | Accrued benefits | | | 118,188 | | | 99,628 | Operating lease liabilities | | | 785,737 | | | 753,928 | Federal credit carryforwards | | | 20,044 | | | 123,465 | Other | | | 83,776 | | | 79,399 | Total deferred tax assets | | | 1,070,213 | | | 1,101,235 | Valuation allowances | | | (21,762) | | | (11,331) | Net deferred tax assets | | | 1,048,451 | | | 1,089,904 | | | | | | | | Deferred tax liabilities: | | | | | | | Property and equipment | | | (396,852) | | | (257,900) | Inventory | | | (466,924) | | | (510,242) | Operating lease assets | | | (713,698) | | | (682,685) | Other | | | (17,770) | | | (41,154) | Deferred tax liabilities | | | (1,595,244) | | | (1,491,981) | | | | | | | | Net deferred tax liabilities | | $ | (546,793) | | $ | (402,077) | | | | | | | |
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| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | | | | | | | | | August 29, | | August 30, | (in thousands) | | 2026 | | 2025 | | | | | | | | Beginning balance | | $ | 22,789 | | $ | 37,986 | Additions based on tax positions related to the current year | | | 3,952 | | | 4,482 | Additions for tax positions of prior years | | | 1,197 | | | 3,643 | Reductions for tax positions of prior years | | | (2,412) | | | (5,118) | Reductions due to settlements | | | (1,086) | | | (13,150) | Reductions due to statute of limitations | | | (6,332) | | | (5,054) | Ending balance | | $ | 18,108 | | $ | 22,789 |
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| Schedule of cash paid for income taxes, net of refunds received |
The following table represents cash paid for income taxes, net of refunds received: | | | | | | Year Ended | (in thousands) | | August 29, 2026 | | | | | U.S. Federal | | $ | 25,624 | U.S. State and Local: | | | | California | | | 21,686 | Other | | | 47,225 | Total U.S. | | | 94,535 | | | | | Foreign: | | | | Mexico | | | 210,466 | Other | | | 7,248 | Total Foreign | | | 217,714 | | | | | Total | | $ | 312,249 |
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